Daimler Truck Holding AG expects to earn more money in 2022 than it initially expected on strong vehicle sales in a better-than-expected third quarter.
Daimler split from luxury automaker Mercedes-Benz AG into a stand-alone company in December. It released preliminary figures in advance of its earnings report on Nov. 11.
Third-quarter preliminary earnings more than doubled to 1.27 billion euros ($1.28 billion) before interest and taxes, the world’s largest truck manufacturer said. The average analyst estimate was 1.09 billion euros. Daimler projected preliminary earnings before interest and taxes that exceeded its Q3 2021 by 159%.
In North America, adjusted EBIT was 738 million euros, a 111% increase over a year-ago EBIT of 351 million euros. Adjusted return on sales was 12% versus 9.7% a year ago.
Better business conditions for Daimler Truck
Significantly higher vehicle sales, strong prices and solid results in the after-sales business all contributed.
The Stuttgart, Germany-based company had projected no growth for the year amid lingering effects of a semiconductor shortage and rolling unavailability of other components. Daimler Truck now expects a “slight increase” in earnings as some of those concerns have waned. That has allowed a reduction of significant backlogs of trucks waiting in production queues.
Daimler Truck has set targets to reach 10% or greater margins by 2025, which would bring it closer to matching the performance of rivals Volvo Group and Paccar Inc.
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